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Human Resource Development in INDIA

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Developing human resources has been a major challenge. If the development of Human resource is to be trace down in INDIA, this is how it evolved.

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Human Resource Development in INDIA

  1. 1. HUMAN RESOURCE DEVELOPMENT IN INDIA Ms. Anubha Rastogi Astt. Prof, Vidya School Of Business 2015-16
  2. 2. Leonard Nadler introduced the term HRD in 1969. He defined HRD as “those learning expenses which are organized for a specific time and designed to bring about the possibility of behavioral change” Meaning of HRD  Human Resource Management (HRM) encompasses many functions.  Human Resource Development (HRD) is just one of the functions within HRM.
  3. 3. In the early seventies 2 consultants Prof.Udai Pareek & Prof.T.V.Rao from the IIM were approached by L&T for a review exercise of their performance appraisal system. In 1974 the consultants studied the system and made recommendations for improving it. They felt that a development oriented performance appraisal system may not achieve its objectives unless accompanied by other sub-systems like employee counseling, potential appraisal, career planning and development, training, OD etc. So a new HRD system was introduced at L&T in the year 1975. Emergence of HRD
  4. 4. 1. •To acquire capabilities (knowledge, perspectives, attitudes, values & skills) for performing tasks. 2. •To develop their enabling capabilities so that they are able to discover & utilize their inner potential. 3. •To develop an organizational culture where team work contributes to the organizational health & dynamism. According to T.V.Rao, HRD is a process by which employees of a organization are continuously helped in a planned way
  5. 5. ORIGIN OF HR  Its origin is dated back to 1800 BC., when wage and incentive plans were included in the Babylonian code of Hammurabi.  The world’s first management book, titled “Artasastra” written by Kautilya, in 400 BC, codified many aspects of human resource practices in ancient India. GROWTH OF HUMAN RESOURCE  HRM in India could be traced back to the period after 1920, when emphasizes was on worker welfare.  In 1931, the royal commission on labor suggested the appointment of labor officer to protect workers interests .  Appointment of labor officer  The second world war  Enactment of Industrial dispute Act  Enactment of Factories Act  1960 and after…..
  6. 6. FIRST PHASE  Immediately after independence the focus was on four reasons :  Maintain discipline  Prevent their formation of and break-up the leadership of trade unionism.  Prevent their formation of and break-up the leadership of trade unionism  Handle recruitment and termination  Keep some form of attendance and personnel records.
  7. 7. SECOND PHASE  IN 1960S, Indian industrialization got a fillip with the rise of the public sector. Hence 3 more functions were added i.e.,  Labor welfare  Participative management  Industrial Harmony In this period, the human relations movement of the west also had its impact on Indian organization.
  8. 8. THIRD PHASE  In 1970, the people management functions was neatly divided into two :  Personnel officer  Establishment officers Fourth Phase  In 1976, birth of worker training institute and attitudinal development. Fifth Phase  In 1985, organization shifted towards making HR Department separately.  HRD and personnel function were clubbed together.
  9. 9. Sixth phase  In early 1990s :  HRM was seen as strategy  Motivation and stress were considered to bring change in HRM  Focus on organization objectives Seventh Phase  In the mid of 1990s, sub specialization like :  Industrial Relations  Training & Development  Information system
  10. 10. Eight phase  HRM is not selective management any more  It became the part of Corporate Strategy formulation and strategy implementation team Late Arrival of HRM in India  Late arrival of factory system  Low status of industrial worker  Professionalization of Human resource Management  Social responsibilities of Business  Change of government attitude
  11. 11. Factors Impending the growth of HRM in India  Abundance of cheap labor  Weak labor movement  Highly Authoritarian culture  Technological Backwardness  Instability in Employment  Unhealthy growth of Trade unions  Migratory characteristic of Indian labor
  12. 12. Evolving Role of HRM in India  Origin Of Human Resource Management in India  The police Man  The Welfare Man  The Law Man  The Liaison Man  The HR Man
  13. 13. Low Commitment from management Since HRD is seen as a non-productive expenditure for the org the line managers are not serious. Technological Impact Focus may be on services which will be retained, re-skilled & deployed by the employees. Changing Environment Indian organizations have also undergone drastic transformation for vibrant new ideas. Emerging Issues in HRD HR Outsourcing This might pose a threat to the internal HR talent over a period of time. Employee Orientation This requires adequate premium to be placed on individual growth & development. Globalization This compels them to increase their ability to learn and collaborate and manage diversity & uncertainity.
  14. 14.  To develop capabilities of all individuals working in an organization in relation to their present role.  To develop capabilities of all such individuals in relation to their future role.  To develop better inter-personal and employer-employee relationships in an organization.  To develop team spirit.  To develop coordination among different units of an organization.  To develop organizational health by continuous renewal of individual capabilities keeping pace with technological changes. Objectives of HRD
  15. 15.  Principle of Development of Organizational Capability  Principle of Potential Maximization  Principle of Autonomy Maximization  Principle of Maximum Delegation  Principle of Participative Decision Making  Principle of Change Management  Principle of Periodic Review Principles
  16. 16. 70% 20% 10% On the job Relationship building Formal programs 70% from real life and on- the-job experiences, tasks and problem solving. This is the most important aspect of any learning and development plan. 20% from feedback and from observing and working with role models. 10% from formal training 70/20/10 learning concept was developed by Morgan McCall, Robert W. Eichinger, and Michael M. Lombardo at the Center for Creative Leadership The 70-20-10 Development Model
  17. 17. HRM HRD Deals with all aspects of HR functions It is a sub section of HRM HRM is a routine function It is a continuous development function Independent One It is a sub system Exclusive Responsibility Of Personnel Dept. Aims at developing capabilities of all its mangers Considers economic rewards, job simplifications as important motivators Considers informal work groups, job enrichment as main motivators. HRM Functions are mostly Formal HRD functions can be informal like Mentorships. HRM VS HRD
  18. 18. Difference Personnel Function HRD Orientation Maintenance Oriented Development Oriented Structure An independent function with independent sub-function Consist of inter-dependent parts Philosophy Reactive function, responding to the events as and when they take place Proactive function, trying to anticipate and get ready with appropriate responses Responsibility Exclusive responsibility of personnel department Responsibility of all managers in the organisation Motivators Emphasis is put on monetary rewards Emphasis is on higher-order needs such as design jobs with stretch, improve creativity and problem solving skills Outcomes Improved performance is the results of improved satisfaction and moral Better use of human resources leads to improved satisfaction and morale Aims Tries to improve the efficiency of people and administration It tries to develop the organisation as a whole and its culture HRD VS Personnel Function
  19. 19. Role of HR Manager The primary responsibilities of Human Resource managers are:  To develop a thorough knowledge of corporate culture, plans and policies.  To act as an internal change agent and consultant  To initiate change and act as an expert and facilitator  To actively involve in company’s strategy formulation  To keep communication line open between the HRD function and individuals and groups both within and outside the organization  To identify and evolve HRD strategies in consonance with overall business strategy.  To facilitate the development of various organizational teams and their working relationship with other teams and individuals.  To try and relate people and work so that the organization objectives are achieved efficiently and effectively.
  20. 20.  To diagnose problems and determine appropriate solution particularly in the human resource areas.  To provide co-ordination and support services for the delivery of HRD programmes and services  To evaluate the impact of an HRD intervention or to conduct research so as to identify, develop or test how HRD In general has improved individual and organizational performance. Current Classification of HR Roles
  21. 21. So, HR play’s four key roles. 1. Strategic Partner Role- turning strategy into results by building organizations that create value 2. Change Agent Role- making change happen, and in particular, help it happen fast 3. Employees Champion Role- managing the talent or the intellectual capital within a firm 4. Administrative Role- trying to get things to happen better, faster and cheaper.
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Developing human resources has been a major challenge. If the development of Human resource is to be trace down in INDIA, this is how it evolved.


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